Mundelein board strikes management deal for apartment building

  • Mundelein officials are buying the Mundelein Apartments building for nearly $1.6 million. Trustees on Monday approved a management agreement for the building.

    Mundelein officials are buying the Mundelein Apartments building for nearly $1.6 million. Trustees on Monday approved a management agreement for the building. Daily Herald File Photo

 
 
Posted8/28/2018 5:22 AM

As they prepare to buy an apartment building in town, Mundelein officials on Monday agreed to pay the current owners to manage the site until the tenants move out and the structure is razed.

The village is buying the Mundelein Apartments building, 516 S. Lake St., and its nearly 1 acre of land from DJAK Properties for about $1.6 million.

 

The building contains 16 units, and all are occupied.

After the tenants relocate, the village will knock down the building, combine the land with adjacent village-owned properties to the south and convert the entire 3.3-acre site to a park overlooking Diamond Lake.

The southern properties -- four homes and a small commercial building that all will be razed -- are on the 600 block of South Lake Street. The village bought them this summer for $775,000.

Under the terms of the management deal, DJAK Properties will continue managing the Mundelein Apartments property, collecting rent for the village, mowing the grass and plowing snow when needed. The company will be paid 20 percent of all gross rent payments for its efforts, according to village documents.

The company also will be paid $35 per hour for any necessary maintenance work.

Under the deal, prior village approval is required if independent contractors are needed for any tasks.

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Village officials hope to demolish the southern buildings this fall and the apartment building next spring. Work on the park could begin in the spring.

Under the terms of the purchase agreement, the Mundelein Apartments tenants can remain up to six months after the real estate closing or until Feb. 23, whichever date is earlier. The real estate closing is set for Friday.

The board approved the management deal with a 5-1 vote. Trustee Dawn Abernathy voted against the agreement.

Abernathy has opposed the park project, saying such an effort should be the Mundelein Park District's responsibility, not the village's.

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